[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38881-38883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14151]



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  Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / 
Rules and Regulations  

[[Page 38881]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-SC-16-0021; SC16-906-1 IR]


Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Relaxation of Container and Pack Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule implements a recommendation from the Texas Valley 
Citrus Committee (Committee) to relax the container and pack 
requirements currently prescribed under the Texas Citrus Marketing 
Order (order). The order regulates the handling of oranges and 
grapefruit grown in the Lower Rio Grande Valley in Texas. The Committee 
locally administers the order and is comprised of producers and 
handlers operating within the production area. This rule adds the word 
``approximate'' to the size specifications of three regulated 
containers to make the language consistent with other containers 
specified under the order. This change provides uniformity in the 
descriptions of containers and helps prevent potential compliance 
violations stemming from slight variations in container dimensions.

DATES: Effective June 16, 2016; comments received by August 15, 2016 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed at: http://www.regulations.gov. All 
comments submitted in response to this rule will be included in the 
record and will be made available to the public. Please be advised that 
the identity of the individuals or entities submitting the comments 
will be made public on the Internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Antoinette Carter, Marketing Order and 
Agreement Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 906, as amended (7 CFR part 906), regulating 
the handling of oranges and grapefruit grown in the Lower Rio Grande 
Valley in Texas, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule relaxes container requirements currently prescribed under 
the order by adding the word ``approximate'' to the size specifications 
of three regulated containers to make the language consistent with 
other containers specified under the order. This change provides 
uniformity in the descriptions of containers and helps prevent 
potential compliance violations stemming from slight variations in 
container dimensions. The Committee unanimously recommended the change 
at a meeting on November 17, 2015.
    Section 906.40(d) of the order authorizes the issuance of 
regulations to fix the size, weight, capacity, dimensions, or pack of 
the container or containers which may be used in the packaging, 
transportation, sale, shipment, or other handling of fruit. Section 
906.340 specifies the container, pack, and container marking 
regulations under the order. This section specifies, in part, the 
containers and dimensions currently authorized under the order.
    The Committee's Container Subcommittee (subcommittee) reviewed the 
list of containers authorized under the order and recommended that the 
Committee modify the descriptions of three of the containers. The 
subcommittee informed the Committee that the descriptions of three of 
the authorized containers specify exact dimensions whereas the 
remainder of the containers provide approximate dimensions. They stated 
that with the containers with specific dimensions container 
manufacturers could inadvertently generate containers that have a small 
variance in size from the specific requirements of the order causing a 
handler to be out of compliance with order requirements. The 
subcommittee noted that the

[[Page 38882]]

remainder of the containers allow for such an occurrence by using the 
word ``approximate'' when providing the dimensions. Consequently, the 
Committee unanimously voted to add the word ``approximate'' in the 
description of the container sizes of the three containers with 
specific dimensions to make the language consistent with the 
descriptions of the other containers. The Committee believes this 
change will provide uniformity in the descriptions of all regulated 
containers and help prevent potential compliance violations stemming 
from slight variations in container dimensions.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this initial regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 170 producers of oranges and grapefruit in 
the production area and 13 handlers subject to regulation under the 
order. Small agricultural producers are defined by the Small Business 
Administration (SBA) as those having annual receipts of less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to Committee data and information from the National 
Agricultural Statistics Service, the average grower price for Texas 
citrus during the 2014-15 season was around $9.53 per box and total 
shipments were near 7.8 million boxes. Using the average grower price 
and shipment information, and assuming a normal distribution of 
production among all producers, the majority of producers would have 
annual receipts of less than $750,000. In addition, based on Committee 
information, the majority of handlers have annual receipts of less than 
$7,500,000 and could be considered small businesses under SBA's 
definition. Thus, the majority of Texas citrus producers and handlers 
may be classified as small entities.
    This rule changes Sec.  906.340 of the container, pack, and 
container marking requirements currently prescribed under the order. 
This rule adds the word ``approximate'' to the size specifications of 
three regulated containers to make the language consistent with other 
containers specified under the order. This change provides uniformity 
in the descriptions of containers and helps prevent potential 
compliance violations stemming from slight variations in container 
dimensions. Authority for this change is provided in Sec.  906.40.
    This action is not expected to impose any additional costs on the 
industry. However, it is anticipated that this action will have a 
beneficial impact. Adding the word ``approximate'' to the dimension 
requirements for the containers with specific dimensions could prevent 
possible order violations or potential extra costs associated with 
replacing incorrect cartons should container manufacturers 
inadvertently generate containers that do not meet order requirements. 
The benefits of this rule are expected to be equally available to all 
fresh orange and grapefruit growers and handlers, regardless of their 
size.
    Regarding alternatives to this action, the Committee considered 
making no changes to the container dimensions, but determined that 
making the recommended change provides consistency in the descriptions 
of all regulated containers and would help prevent potential order 
violations. Therefore, the Committee rejected this alternative.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189, Generic Fruit Crops. No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Texas citrus handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the Texas citrus industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the November 17, 2015, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue.
    Also, the Committee has a number of appointed subcommittees to 
review certain issues and make recommendations to the Committee. The 
Committee's Container Subcommittee met on November 11, 2015, and 
discussed this issue in detail. That meeting was also a public meeting 
and both large and small entities were able to participate and express 
their views. Finally, interested persons are invited to submit comments 
on this interim rule, including the regulatory and informational 
impacts of this action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Antoinette Carter at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    This rule invites comments on a change to the container and pack 
requirements currently prescribed under the Texas citrus marketing 
order. Any comments received will be considered prior to finalization 
of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim rule, as hereinafter set forth, will tend to effectuate 
the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This action relaxes the current container and pack 
requirements; (2) the industry is currently shipping oranges and 
grapefruit; (3) the Committee unanimously recommended these changes at 
a public meeting and interested parties had an opportunity to

[[Page 38883]]

provide input; and (4) this rule provides a 60-day comment period and 
any comments received will be considered prior to finalization of this 
rule.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 906 is 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


0
2. In Sec.  906.340, paragraphs (a)(1)(i) through (iii) are revised to 
read as follows:


Sec.  906.340  Container, pack, and container marking regulations.

    (a) * * *
    (1) * * *
    (i) Closed fiberboard carton with approximate inside dimensions of 
13\1/4\ x 10\1/2\ x 7\1/4\ inches: Provided, That the container has a 
Mullen or Cady test of at least 200 pounds;
    (ii) Closed fully telescopic fiberboard carton with approximate 
inside dimensions of 16\1/2\ x 10\3/4\ x 9\1/2\ inches:
    (iii) Closed fiberboard carton with approximate inside dimensions 
of 20 x 13\1/4\ inches and a depth from 9\3/4\ to 13 inches: Provided, 
That the container has a Mullen or Cady test of at least 250 pounds: 
And Provided further, That the container may be used to pack any poly 
or mesh bags authorized in this section;
* * * * *

    Dated: June 10, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-14151 Filed 6-14-16; 8:45 am]
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